TAIPEI (Taiwan News) — American Institute in Taiwan Director Raymond Greene said the US will continue to deepen economic and trade cooperation with Taipei, including efforts to establish a China-free drone supply chain and bolster Taiwan's defense sector.
Greene made the remarks at the 80th anniversary celebration of the Taiwan Association of Machinery Industry held on Thursday. Attendees also included President Lai Ching-te (賴清德), Minister of Economic Affairs Kung Ming-hsin (龔明鑫), and Deputy Legislative Speaker Johnny Chiang (江啟臣), per CNA.
The US and Taiwan are working to integrate their drone industry supply chains and jointly establish a secure network for key components, Greene said. He noted that strengthening the development of rare earth mining and processing equipment is also crucial for enhancing the resilience of the UAV supply chain.
Greene highlighted that Taiwan is one of the world’s key manufacturing hubs with a comprehensive machinery industry supply chain. Many US companies have established operations in Taiwan to deepen cooperation in areas such as semiconductors, energy, cybersecurity, and machinery.
He added that Taiwan’s machinery sector is key to supporting US reindustrialization efforts aimed at reviving domestic manufacturing, reducing reliance on foreign supply chains, and advancing high-tech industries.
Greene noted the US government is also promoting infrastructure to support AI development and emphasized that achieving this goal will require advanced manufacturing technologies, automation equipment, and machine tools from Taiwan’s machinery sector.
Taiwan’s defense budget is set to rise to NT$949.5 billion next year, or 3.32% of GDP, up from 2.45% of GDP this year. The government plans to increase defense spending to 5% of GDP by 2030, pending approval from the Legislative Yuan.
Greene praised Taiwan’s efforts to strengthen its defense capabilities, calling them crucial for maintaining peace in the Indo-Pacific. He added that combining Taiwan’s manufacturing strengths with US R&D could position Taiwan as a major global hub for defense production.
